What to do when crop prices are volatile

Aug 08, 2023

"The crop growing period of market action is sometimes referred to as the ‘silly season’,” says Neil Blue, provincial crops market analyst with the Alberta government. “Dryness in both the Canadian Prairies and U.S. corn/soybean belt plus intensified Russian attacks on Ukraine grain export structures have caused a crop market price rally. Adding in the influences of the speculative trade results in an extremely volatile market. What can a producer do in this situation?"

First, Blue says producers should review their cash flow situation at least 2 or 3 months forward. What farm and personal expenses and what loans will require payments? What amounts from sources of cash inflow, be it product sales, other income, or loans will be available?

"The federal Advance Payments Program (APP) is a loan source to consider for cash flow needs,” says Blue. “Using farm commodities as security, the APP can potentially provide up to $1 million as an advance, with the first $350,000 of the advance interest free during this year. With a current chartered bank prime interest rate of 7.2%, the interest savings of accessing the APP advance can be significant."

Click here to see more...

Video: Dicamba Returns for Georgia Farmers: What the New EPA Ruling Means for Cotton Growers

After being unavailable in 2024 due to registration issues, dicamba products are returning for Georgia farmers this growing season — but under strict new conditions.

In this report from Tifton, Extension Weed Specialist Stanley Culpepper explains the updated EPA ruling, including new application limits, mandatory training requirements, and the need for a restricted use pesticide license. Among the key changes: a cap of two ½-pound applications per year and the required use of an approved volatility reduction agent with every application.

For Georgia cotton producers, the ruling is significant. According to Taylor Sills with the Georgia Cotton Commission, the vast majority of cotton planted in the state carries the dicamba-tolerant trait — meaning farmers had been paying for technology they couldn’t use.

While environmental groups have expressed concerns over spray drift, Georgia growers have reduced off-target pesticide movement by more than 91% over the past decade. Still, this two-year registration period will come with increased scrutiny, making stewardship and compliance more important than ever.